Hyundai Glovis Plunges 10%, CEO Posts "We're a Shipping Company Too"

Korea Investment & Securities recommended Hyundai Glovis (086280) on Friday as a beneficiary stock amid growing concerns over Middle East logistics disruptions following U.S. and Israeli airstrikes on Iran. The recommendation came a day after Hyundai Glovis shares tumbled 10%.

In response to the stock plunge, Hyundai Glovis CEO Lee Kyu-bok posted on social media: "We also operate eleven VLCCs and one-third of our operating profit comes from shipping—we are a shipping company." The post quickly drew market attention.

Korea Investment maintained its "buy" rating on Hyundai Glovis with a target price of 330,000 won. The brokerage noted that multiple attacks on civilian vessels in the Strait of Hormuz have effectively halted navigation in the waterway.

While the direct impact of a potential strait blockade is concentrated in energy markets including crude oil and gas, anxiety is spreading across the entire shipping sector, the report said.

Korea Investment expects supply bottlenecks from shipping delays and port congestion to extend into the container market. The brokerage sees an investment opportunity in Hyundai Glovis, which fell 10% alongside other Hyundai Motor Group affiliates, while Korean shipping stocks surged 15-30% as investors sought exposure to the sector.

"In 2025, Glovis's shipping business including VLCCs and PCCs (Pure Car Carriers) posted the largest operating profit increase among Korean carriers, accounting for 36% of total profits," said Choi Go-woon, analyst at Korea Investment. "The PCC industry, like container shipping, is likely to see freight rate increases when ports become congested or logistics schedules are disrupted. Glovis also operates 11 VLCCs, the second-largest fleet among listed companies after HMM."

"Given that war-related expectations for the shipping sector are currently overblown, Hyundai Glovis represents the most realistic investment option—even if not a pure-play carrier—as a company with more certain profit improvements this year," Choi added.